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Selling a forestry.

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  • 31-10-2014 1:03am
    #1
    Feckthis
    Closed Accounts Posts: 504 ✭✭✭


    Hi folks,
    Forgive me for my ignorance on the subject. We have a forestry here about 6acres. Could it be sold? Who would buy it?


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    #2
    benjydagg
    Registered Users Posts: 199 ✭✭benjydagg


    Feckthis wrote: »
    Hi folks,
    Forgive me for my ignorance on the subject. We have a forestry here about 6acres. Could it be sold? Who would buy it?

    What species of trees? What county? Roadside?


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    #3
    TheBody
    Registered Users Posts: 5,619 ✭✭✭TheBody


    benjydagg wrote: »
    What species of trees? What county? Roadside?

    Also, what age are the trees?


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    #4
    Feckthis
    Closed Accounts Posts: 504 ✭✭✭Feckthis


    Sorry for the delay.

    My great uncle planted it for his retirement unfortunately he died youngish. not sure what age it would be. It's on hilly ground. No roadside frontage. The type of timber? Eh not sure either. Here's a picture


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    #5
    Feckthis
    Closed Accounts Posts: 504 ✭✭✭Feckthis


    Just found out. The forestry is 40years old and the type is Douglas fir.


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    #6
    Pod123
    Registered Users Posts: 116 ✭✭Pod123


    Hope I posted this in the right thread if not please move.
    I have a 20 year forestry approx 11 heactares. It is a 20% diverse plantation. It’s down a narrow lane/right of way so access is very limited.

    I tried a couple of auctioneers but no joy.

    There was no thinning done.

    Any ideas as how I can sell this or anyone who would specialise in this???buy it as investment??

    Any advice wellcome.
    Thanks in advance.


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    #7
    accidental forester
    Registered Users Posts: 69 ✭✭accidental forester


    Try Paul Lafferty at https://www.forestsales.ie/. He specializes in forestry so should be able to advise.


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    #8
    Pod123
    Registered Users Posts: 116 ✭✭Pod123


    accidental forester wrote: »
    Try Paul Lafferty at https://www.forestsales.ie/. He specializes in forestry so should be able to advise.

    Thanks for that. I will contact him tomorrow. I will keep you posted.


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    #9
    Dozer1
    Registered Users Posts: 1,202 ✭✭✭Dozer1


    Don't hold your breath,
    mine is for sale 3 years, forestry is really difficult to shift unless you have a serious acreage


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    #10
    fergus1001
    Registered Users Posts: 2,625 ✭✭✭fergus1001


    anything sub 20 acres is impossible to shift, if it's planted 40 years get a price for clearfelling it


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    #11
    foxirl
    Registered Users Posts: 676 ✭✭✭foxirl


    fergus1001 wrote: »
    anything sub 20 acres is impossible to shift, if it's planted 40 years get a price for clearfelling it

    Just curious to why small forests are impossible to shift. Does it come down to economies of scale for thinning and clearfell. I thought small acreage would offer new comers a way into forestry without a massive investment


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    #12
    fergus1001
    Registered Users Posts: 2,625 ✭✭✭fergus1001


    foxirl wrote:
    Just curious to why small forests are impossible to shift. Does it come down to economies of scale for thinning and clearfell. I thought small acreage would offer new comers a way into forestry without a massive investment


    it is exactly because of economies of scale, you won't achieve the same price for thinnings and a clearfell in a small block because of the logistics involved


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    #13
    BogBoy84
    Registered Users Posts: 34 ✭BogBoy84


    Hi,
    If you manage to get somebody in to fell your trees, I'd be interested in buying a few loads of pulp or logs. Whereabouts is the forest? Thanks


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    #14
    Donald Trump
    Registered Users Posts: 19,172 ✭✭✭✭Donald Trump


    If you buy a forest, can you deduct the value of the standing trees from the purchase price for stamp duty purposes?


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    #15
    fergus1001
    Registered Users Posts: 2,625 ✭✭✭fergus1001


    Donald Trump wrote:
    If you buy a forest, can you deduct the value of the standing trees from the purchase price for stamp duty purposes?


    yes of coarse


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    #16
    Donald Trump
    Registered Users Posts: 19,172 ✭✭✭✭Donald Trump


    fergus1001 wrote: »
    yes of coarse




    Who would value it? Self valuation but subject to challenge and maybe penalties?



    Or get a registered forester maybe?


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    #17
    fergus1001
    Registered Users Posts: 2,625 ✭✭✭fergus1001


    Donald Trump wrote:
    Or get a registered forester maybe?


    I would get a registered forester who is used to valuing forestry not every forester will be able to do this for you they will compile a report for you which you can present to revenue


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    #18
    Donald Trump
    Registered Users Posts: 19,172 ✭✭✭✭Donald Trump


    fergus1001 wrote: »
    I would get a registered forester who is used to valuing forestry not every forester will be able to do this for you they will compile a report for you which you can present to revenue




    Might there be tax implications on the other side.


    Suppose you re buying 20 acres with 10 in forestry. You pay 150k. If you put standing timber as 20k then you pay 6% stamp duty on 130k. But if you put the standing timber at 50k then you pay 6% on 100k.


    But if you sell in on in 10 years for 250k and say can put the standing trees at 100k at that point in time, you will pay CGT on the difference attributed to the land. Which in one case would be 20k and in the other be 50k.




    Basically, could writing down value based on value of timber mean postponing tax now but having to probably pay more in the future?


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